Ab207 Unit 7 Assignment

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Unit 7 Assignment 3/18/14 AB207 Start a Business Zappos.com is an online shoe and clothing retailer currently headquartered in Las Vegas, Nevada. The company was founded in 1999 and in 2009 was acquired by retail giant Amazon.com. As Hoovers, a proprietary business information site states “Zappos.com has become the #1 seller of shoes online (ahead of J.C. Penney) by stressing customer service” (2014). Zappos.com has become famous by word of mouth for their great customer service. The company offers free shipping and customer service that often times goes above and beyond normal company policies via their call center representatives. In order to provide exceptional service, Zappos.com takes on larger shipping bills and customer service training programs in order to maintain their customer loyalty. In regards to a possible way that Zappos.com could cut down on their expenses related to these services, the company has a few options. They could negotiate or re-negotiate contracts with an exclusive shipping company such as UPS or FED-EX. It is possible with the amounts that the company spends on shipping that either of these companies would want to contract a future over the shipping rights in the business. This could provide cheaper shipping rates as business would be guaranteed through a single provider. Amazon.com has been making headlines recently with their drone shipping capabilities in the near future. This could also be a great implementation into the Zappos.com business model as Amazon will now take hold of their own shipping company and save on numerous different aspects of shipping goods. Streamlining customer service and call center expenses, Zappos.com could ship their call center jobs overseas to more competitive markets for these services such as India. This would save on day to day expenses of operation and employee training.

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